Why Rocket Lab Stock Bounced Back on Friday
Rocket Lab (NASDAQ: RKLB) shareholders received some wonderful news Thursday night when the U.S. Department of Defense announced that the company, along with privately held Stoke Space, had been added to "Lane 1" of Phase 3 of the National Security Space Launch program by U.S. Space Force.
In response, Rocket Lab stock soared by more than 7% in the opening minutes of trading Friday before retreating to about a 3.5% gain as of 10:05 a.m. ET.
In its own press release, Rocket Lab clarified that NSSL Phase 3 Lane 1, or NSSL3(1), is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract worth up to $5.6 billion for Rocket Lab if it wins all of the contracts on offer over the five-year period ending June 2029. In other words, NSSL3(1) is an umbrella contract that states the total amount of money up for grabs and lists all the space companies that can bid on the contracts to fulfill individual launches and be paid for them.
Source Fool.com
